Henry Lamb writes in his July 3 WorldNetDaily column:
The root cause of the near-collapse that occurred in the last year of the Bush administration can be traced to the Democratic socialist idea that everyone has a right to adequate housing.
Before President Carter, private lenders in a free market often refused to fund mortgages in certain parts of cities where the neighborhoods were so bad that lenders considered the investment to be unsafe. Democrats and socialists called this practice "redlining." Carter and his Democratic colleagues enacted the Community Reinvestment Act, which effectively outlawed redlining.
This was an enormous intrusion by the government into the marketplace, but it was not enough to satisfy Democrats and socialists.
As we explained when Michael Reagan expressed a similar nostalgia for the practice, redlining in practice was racist because those "bad" and "unsafe" areas were invariably minority-dominated, and people who lived there were turned down for loans because they lived in those areas, not because of their ability to pay back the loan.